ATO Confirms Tax Bonus Is On Its Way

by Mary Swire, Tax-News.com, Hong Kong

03 February 2009

Australia's Tax Commissioner, Michael D’Ascenzo, has announced that work is underway to ensure that the Australian Taxation Office can start paying the Australian government’s tax bonus from early April 2009.

Under the criteria of the Tax Bonus, the Australian government will give all individuals earning AUD100,000 or less an AUD950 lump-sum tax bonus. The bonus will only be available to those individuals who paid tax in the 2007-2008 financial year.

“At this stage we believe most eligible people won’t have to do anything to receive the proposed payment,” Mr D’Ascenzo explained, adding:

“By using information in people’s 2007-08 tax return we will work out who is eligible and the best way to get the payment to them."

The proposed tax bonus will only be paid to those who have their 2007-08 return in by June 30, 2009.

D’Ascenzo added: “Our e-tax service will remain available for those who want to do their own return online, or people should contact their tax agent."

“We will send the payment to the address or bank account people nominated as their preference for the 2007-08 tax return."

The ATO has advised individuals to contact the Tax Office by the middle of March if they need to change address or bank details.

Those using a tax agent may also wish to use a different address or personal bank account for this one-off payment. Of this, Mr D'Ascenzo remarked:

“Because many people use a tax agent we are working with tax agent representatives to ensure the payments process works as smoothly as possible for everyone."

“We are setting-up a working group with representatives from across the agent industry."

“Of course, the arrangements we are putting in place to make the tax bonus payments are contingent on the supporting legislation passing through Parliament."

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